Congo Rebels Seize Eastern City of Goma as Thousands Flee

A M23 rebel walks past a United Nations armoured personnel carrier in the streets of Goma, in the Democratic Republic of the Congo, on Nov. 20, 2012. Photographer: Phil Moore/AFP/Getty Images

Nov. 21 (Bloomberg) -- The United Nations Security Council
demanded the immediate withdrawal of Congo’s M23 rebels from the
eastern city of Goma and called for sanctions against the
group’s leaders and backers.

In a resolution adopted yesterday, the council also sought
“clarification of reports of external support provided to the
group.” The U.S. State Department said it was “gravely
alarmed” by the rapid deterioration in the security situation
in eastern Congo.

M23 rebels captured Goma, capital of the resource-rich
North Kivu province, yesterday after resuming fighting against
Congo’s army five days ago. The clashes forced at least 60,000
people living in displacement camps in the area to flee,
according to Medecins Sans Frontieres, the Geneva-based medical
charity. The renegade group is made up of soldiers that mutinied
in April and is headed by General Bosco Ntaganda, who is wanted
by the International Criminal Court for war crimes.

Congo is Africa’s largest producer of tin ore, the
continent’s second-biggest copper producer after Zambia, and the
source of about half the world’s cobalt. It is also an important
source of columbite-tantalite, the mineral known as coltan that
is used in mobile phones and computers.

Shares in Banro Corp., the Toronto-based mining company
that operates the Twangiza mine about 260 kilometers (162 miles)
south of Goma, fell the most in three years yesterday after the
city was captured.

Copper Projects

Freeport McMoRan Copper & Gold Inc. of the U.S., Baar,
Switzerland-based Glencore International Plc, and Minmetals
Resources Ltd., based in Hong Kong, have copper and cobalt
projects in the country. Randgold Resources Ltd. and AngloGold
Ashanti Ltd. are investing in gold mines in the country, which
is about the size of Western Europe.

Goma, about 1,659 kilometers (1,031 miles) east of
Kinshasa, is situated on the border with Rwanda at the northern
edge of Lake Kivu. Historically, it has been the main transit
point for minerals from the region.

A UN group of experts monitoring Congo’s arms embargo has
accused Rwanda and Uganda of backing the rebels, allegations
both governments deny. Congo and Rwanda have fought directly or
by proxy since the late 1990s. A 2009 peace deal between Congo
and Rwandan-backed rebels improved relations between the two
countries until the M23 insurgency began seven months ago.

The U.S. State Department urged Congo, Uganda and Rwanda’s
leaders to “engage in a direct and honest dialogue in pursuit
of a political resolution to the immediate hostilities.” All
three were meeting in Kampala, the Ugandan capital, the Daily
Monitor newspaper reported.

Child Soldiers

On Nov. 13, the UN imposed sanctions on M23 commander
Colonel Sultani Makenga for violations of international law,
including rape and the use of child soldiers.

The Security Council said it’s considering further
sanctions “against the leadership of the M23 and those
providing external support to the M23 and those acting in
violation of the sanctions regime and the arms embargo.”

Two M23 commanders, Innocent Kaina and Baudouin Ngaruye,
may be designated for targeted sanctions, it said.

Congo’s $14.7 billion economy is forecast to grow 7.2
percent this year and 8.2 percent in 2013, according to the
International Monetary Fund, which has a $529 million loan
agreement with the country.

While the economy has been growing since the end of nearly
a decade of war in 2003, the United Nations still ranks the
country near the bottom of its Human Development Index, which
measures indicators including education and income.